Morning Briefing: Growing demand for specialist loans amongst brokers

Growing demand for specialist loans amongst brokers
Bluestone Mortgages (Bluestone) has announced the successful pricing of a $200 million residential mortgage-backed debt security, completed on 29 April 2016. This is Bluestone’s third successful debt raising since returning to the loan origination market in 2013, and takes total funds raised to $500 million over the same period. 

CEO Asia Pacific for Bluestone Mortgages Campbell Smyth, said that the latest successful raising is proof of the growing demand for Bluestone’s specialist loan products, particularly from brokers.

“We have had triple digit growth in loan volumes since 2013, and with on-going support from CBA and Macquarie Bank, we look forward to working with our brokers to expand our product and service offerings.

We have no doubt that demand for specialist loan products will continue to grow. Brokers are telling us that we are filling a serious gap in the market, providing specialist products to segments which have typically been underserved, like the self-employed,” Smyth explained.

Opinions leans heavy one way on cash rate decision
Australia’s official cash interest rate looks set to remain unchanged for a full calendar year, with the Reserve Bank of Australia leaving it untouched after tomorrow’s board meeting becoming the popular pick with a number of leading economists and financial commentators.

In the latest RBA survey from Finder, 31 of the 32 surveyed economist and experts have predicted the central bank will leave the cash rate at 2%.

As far as potential rate changes for the months ahead are concerned, 55% thought a rate cut would occur before 2016 is out. Forty-five percent believed change would not come until 2017 – all who held this opinion projected a rise in cash rate rather than a fall.

The last time the cash rate was adjusted was at the RBA’s May 2015 meeting, when a reduction of 0.25% was announced.